The video conferencing market has a large number of players, and it has become a scramble for market share.
It seems the trick to gain larger portions of the market in this video conferencing industry is to integrate products with a virtualized video framework which is compatible with all electronic communication gadgets. Large corporations in the industry including Cisco, Citrix and Microsoft are scrambling with new but highly active firms like Blue Jeans Network and Zoom. Google and Skype are right in the mix too, providing consumers with affable utilities.
Towards the end of 2015, Lifesize came into the video conferencing picture. They managed to come up with $17.5 million from three venture capital organizations, after breaking from breaking from Logitech.
Skype has long provided a consumer friendly service that most video conferencing companies are seeking to adopt. Such a basis added to a secure layer and active assistance would produce an ideal product. Players in the industry realize that coming up with a product that only works on their platform only will not only be a disadvantage but also costly. Open source products that work on common web browsers, hand held gadgets and modern television sets seem to have become more attractive solutions.
Lifesize announced their first public statement since the split from Logitech by declaring a possible $7billion business chance. Pioneer and CEO of Lifesize C Malloy stated “We have been waiting for 20 years for the video collaboration market to become mainstream. Consumers have gotten used to simple communication on iPhones and texting apps and when they walk into the office in the morning they want to have that same level of engagement with customers and suppliers.”
Video collaboration has largely moved from just conferences and negotiations to become the preferred way that business parties converse about business assignments.
A company that specializes in trend analysis, Vyopta, released findings last year, saying that corporates have used Video conferencing twice as much over the last two years.
Video collaboration giant Cisco, has gone fully into adopting new structures and strategies. Cisco publicized an agenda to acquire Acano, a London based firm for around $700million, with a view to do away with the element of proprietary solutions. About ten years ago, Cisco made available video conferencing systems for board level personnel, for $300 000.
In 2009, Blue Jeans was formed by former Cisco executive Krish Ramakrishnan, with a goal towards software. Blue Jeans’ strategy was to make video conversations available from as many places as possible, with the least number of steps to activate and participate in a video conference meeting. Blue Jeans, based in California, lists Facebook and Metlife as clients, and has made up to $175 million.
Software firms need to add a video service to stay competitive in the coming few years. This is According to The Blue Jeans pioneer Krish Ramakrishnan. He believes that even firms that have been providing crucial IT products need a video service if they are to remain afloat. Oracle is one such company he advises to consider taking on board video conferencing services to their core. “There is a scramble out there to get footprint “
To achieve self-governance, Lifesize had to go through two years of limiting cost in order to virtualize. Running expenditure has been reduced by half over the two years, and so has the number of staff, with the number going down by more than half to 250.
Lifesize CEO C Malloy has been in video conferencing for 20 years now, and his first brainchild ViaVideo was sold to Polycom. Today, Lifesize has a proprietary camera on the market. Lifesize has up to 2000 clients over the last year and a half. Lifesize and Blue Jeans are both compatible with Skype, Google Hangouts and Cisco.
Lifesize is still not completely independent, as a third is still owned by Logitech. Also, firms in southern part of San Francisco aided to foreign capital. Redpoint Ventures, Sutter Hill Ventures and Meritech Capital Partners all had a hand in raising the capital.
A partner at Redpoint, Jeff Brody said “There is a very clear execution capability of the team we have just invested in.” Brody and Lifesize CEO Malloy know each other for a while, with Brody backing Malloy’s ViaVideo and the initial Lifesize. From Brody’s statement, it is evident he is confident of his chances in a very active and fierce market.